Transfer ISA funds?

mowbray

Hi..I haven't done an ISA transfer before and was wondering how it works..I currently have a 2 year fixed with about £14500 in which runs out in early september and a 1 year fixed with £5100 which runs to a week or so later, both with the HALIFAX...my plan is in late sept/early oct to put the £19600 plus the interest it's made into a 3 or maybe 5 year ISA along with an additional £5100 (or whatever the next tax year allows)...will it be allowed to merge the 2 together and add new funds?..if so will it mean I have to stay with the HALIFAX or will there be options to put it all in a new fixed account?

Thanks

Loughton_Monkey

You can achieve what you want, but to get the 'best' overall return, you will have to do a 'bit of work'. One strategy [I'm assuming you have not contributed this year, since both ISA's you mention must have been prior to 6th April 2010) would be like this:

1. Open a new 'Varable Rate' ISA now with as good a rate as you can get. [Halifax, I believe, is reasonably competitive]. Contribute this year's allowance if you want to.

2. Once it is open, get them to transfer the 1 year fix into it only after it has 'matured'.

3. Now contribute 2011/12 contribution £5,430? into the new one as well. Any time after 6th April but before September.

4. When the 2 year ISA matures in September, transfer that as well, into the same ISA. You now have all your eggs in one basket.

5. Now seek out the specific 3/5 year fix that appeals to you, and open that by transferring in the full balance of your 'variable' ISA.

xrjtg

In short, you can transfer whatever you like, wherever you like, whenever you like, subject to (a) you not being locked into a fixed rate period (b) the new provider accepting transfers in and (c) the current year's subscriptions have to be kept together (although past years' money can be transferred freely).